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Pfizer said Tuesday that it will purchase Biohaven, a maker for migraine drugs, for $11.6 billion in cash in a deal that may help ease what has been a brutal bear market for biotechnology stocks.

Biohaven markets one migraine treatment that is approved in the U.S., NURTEC ODT, and has a second migraine treatment, a nasal spray called zavegepant, that was submitted to the U.S. Food and Drug Administration in March. In a release of earnings Tuesday, Biohaven forecast that it would see product sales of between $825 million and $900 million in 2022.


But investors are likely to see the deal as a sign that large pharmaceutical companies might finally start using large reserves of cash in order to purchase smaller biotech firms. The XBI biotech index is down 44% this year, and Monday fell 8% in its biggest decline since 2015.

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